Almonty Industries Financials and NI 43-101 Technical Report on Sangdong Mine

- August 30th, 2016

Almonty Industries Inc. (“Almonty” or the “Company”) (AII.V) today announced the filing of its unaudited interim consolidated financial statements and management discussion & analysis (“MD&A”) as at and for the three and nine-month periods ended June 30th, 2016. Unless otherwise indicated, all currency amounts contained in this news release are in thousands of Canadian dollars. …

Almonty Industries Inc. (“Almonty” or the “Company”) (AII.V) today announced the filing of its unaudited interim consolidated financial statements and management discussion & analysis (“MD&A”) as at and for the three and nine-month periods ended June 30th, 2016. Unless otherwise indicated, all currency amounts contained in this news release are in thousands of Canadian dollars.

Highlights for the Quarter and year-to-date:

  • Los Santos Mine turning cash positive despite low tungsten price
  • Extension of mine life at Los Santos via discovery of additional 456,570 tonnes of ore at 0.28% grade of WO3 (approximately 1 year of additional mine life) inside the optimized pit designs
  • Production costs at Panasqueira continue to decrease to near break-even levels and mined grades continuing to improve
  • Wolfram Camp transition on schedule, lower operating costs expected when production resumes
  • Increased ownership of Valtreixal to 51%
  • Signed Letter of Commitment with the Korean Development Bank (“KDB”) for KRW 50,000,000 (CAD$57.9 million) for the build-out of the Sangdong Mine
  • Raised over $6.6 million in equity year to date in three separate financings
  • Entered into a Revised Heads of Agreement to acquire ATC Alloys Ltd

The following financial information is as at and for the three and nine months ended June 30th, 2016, and 2015 and the three months ended March 31st, 2016:

Three Months Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended Ended
30-Jun-16 30-Jun-15 31-Mar-16 30-Jun-16 30-Jun-15

$’000

$’000

$’000

$’000

$’000

Gross Revenue 8,280 8,731 10,377 26,838 27,727
Mine production costs 6,733 5,550 10,908 26,323 20,262
Mine impairment
Depreciation and amortization 1,140 1,556 3,081 6,241 6,133
Earnings (loss) from mining operations 407 1,625 (3,612) (5,726) 1,332
General and administrative costs 2,561 1,349 2,139 6,318 4,461
Earnings (loss) before the under noted items (2,154) 276 (5,751) (12,044) (3,129)
Interest expense 574 323 555 1,664 843
Foreign exchange (gain) loss 28 (258) (1,447) (850) 296
Non-controlling interest 27 27
Tax provision 376 (62) (392) (16) (62)
Net income (loss) for the period (3,132) 246 (4,467) (12,842) (4,233)
Income (loss) per share basic ($0.03)

$0.00

($0.05) ($0.14) ($0.09)
Income (loss) per share diluted ($0.03)

$0.00

($0.05) ($0.14) ($0.09)
Dividends
Cash flows provided by (used in) operating activities (2,546) 376 (631) (2,285) (1,290)
Cash flows provided by (used in) investing activities (3,917) (5,413) (3,657) (9,499) (11,445)
Cash flows provided by (used in) financing activities 8,009 (1,264) 7,680 15,981 1,527
30-Jun-16 30-Sep-15
$’000 $’000
Cash 4,962 866
Restricted cash 1,257 1,223
Total assets 166,358 117,527
Bank indebtedness 2,875 1,794
Long-term debt 55,737 44,435
Shareholders’ equity 42,508 49,002
Other
Outstanding shares (‘000) 104,967 86,485
Weighted average outstanding shares (‘000)
Basic 101,450 51,787
Fully diluted 101,450 51,787
Closing share price $0.305 $0.68

Lewis Black, President & CEO of Almonty said, “We believe this quarter represents the turning point, both in terms of the rebound in the price of APT and Almonty’s continued cost control at its mining operations. Q3 2016 is the first quarter that Almonty was able to turn a profit from mining operations since the price of APT fell below US$200 per MTU. Our continued focus on cost control is paying off and we have reduced our EBIT loss to less than 50% of the loss from Q2 2016.

We have made significant progress across all of our operations and are moving forward with the repositioning of the Wolfram Camp operations and the planned acquisition of ATC Alloys Limited.

We are also pleased to be able to file the updated NI 43-101 technical report on Sangdong demonstrating a significant improvement in the resource, both in terms of tonnage and grade of ore and are arranging debt and equity financing in order to continue our development of this project as we work towards its planned commissioning in 2017.”

Qualified Person
The amended Technical Reports filed today were prepared by Adam Wheeler, an independent mining consultant. Mr. Wheeler is an independent Qualified Person for the purposes of NI 43-101 and has prepared and/or approved the scientific and technical disclosure contained in this news release.

About Almonty
The principal business of Almonty is the mining, processing and shipping of tungsten concentrate from its Los Santos Mine in western Spain, its Wolfram Camp Mine in north Queensland, Australia and its Panasqueira mine in Portugal as well as the development of the Sangdong tungsten mine in Gangwon Province, Korea and the Valtreixal tin/tungsten project in north western Spain. The Los Santos Mine was acquired by Almonty in September 2011 and is located approximately 50 kilometres from Salamanca in western Spain and produces tungsten concentrate. The Wolfram Camp Mine was acquired by Almonty in September 2014 and is located approximately 130 kilometres west of Cairns in northern Queensland, Australia and produces tungsten and molybdenum concentrate. The Panasqueira mine, which has been in production since 1896, is located approximately 260 kilometres northeast of Lisbon, Portugal, was acquired in January 2016 and produces tungsten concentrate. The Sangdong mine, which was historically one of the largest tungsten mines in the world and one of the few long-life, high-grade tungsten deposits outside of China, was acquired in September 2015 through the acquisition of a 100% interest in Woulfe Mining Corp. Almonty owns 51% of, and has an irrevocable option to acquire a 100% ownership interest in, the Valtreixal tin-tungsten project in northwestern Spain. Further information about Almonty’s activities may be found at www.almonty.comand under Almonty’s profile at www.sedar.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Disclaimer for Forward-Looking Information

When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. This press release contains forward-looking statements and information including, without limitation, Los Santos turning cash positive, comments regarding the Company’s belief that this quarter represents the turning point in the commodity price cycle, production costs at Panasqueira continue to decrease, Wolfram Camp transition on schedule with lower costs expected when operations resume, our continued focus on cost control is paying off; and, arranging equity and debt financing to continue our development of Sangdong and work towards its planned commissioning in 2017. These statements and information are based on management’s beliefs, estimates and opinions on the date that statements are made and reflect Almonty’s current expectations.

4 responses to “Almonty Industries Financials and NI 43-101 Technical Report on Sangdong Mine

  1. In newletter, Signed Letter of Commitment with the Korean Development Bank (“KDB”) for KRW 50,000,000 (CAD$57.9 million) for the build-out of the Sangdong Mine. But KRW 50,000,000 is just 60,000CAD. I think there is something worng calculation.

    1. Thank you for your comment. There seems to be an error in the original press release dated August 29th (which we posted in its entirety above), as the previous one dated July 26th does state the term loan amount as KRW 50 billion.

  2. In newletter, Signed Letter of Commitment with the Korean Development Bank (“KDB”) for KRW 50,000,000 (CAD$57.9 million) for the build-out of the Sangdong Mine. But KRW 50,000,000 is just 60,000CAD. I think there is something worng calculation.

    1. Thank you for your comment. There seems to be an error in the original press release dated August 29th (which we posted in its entirety above), as the previous one dated July 26th does state the term loan amount as KRW 50 billion.

Leave a Reply